05-21-2009, 01:10 PM
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#41
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Franchise Player
Join Date: Jul 2005
Location: in your blind spot.
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Quote:
Originally Posted by malcolmk14
I don't think it is. I believe if you win the lottery they pay you in installments over 25 years, but I could be wrong.
If you take the lump-sum payment, it's the present value of all the future installments.
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That is the US.
Canada is a full payout.
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"The problem with any ideology is that it gives the answer before you look at the evidence."
—Bill Clinton
"The greatest obstacle to discovery is not ignorance--it is the illusion of knowledge."
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—WKRP in Cincinatti
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The Following User Says Thank You to Bobblehead For This Useful Post:
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05-21-2009, 01:10 PM
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#42
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Franchise Player
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Quote:
Originally Posted by malcolmk14
I don't think it is. I believe if you win the lottery they pay you in installments over 25 years, but I could be wrong.
If you take the lump-sum payment, it's the present value of all the future installments.
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No lottery prizes here are the full lump sum payments, they don't pay in instalments.
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The Following User Says Thank You to bigtmac19 For This Useful Post:
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05-21-2009, 01:22 PM
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#43
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Lifetime Suspension
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Looks like Edmonton is about to lose 13 citizens.
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05-21-2009, 01:23 PM
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#44
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Redundant Minister of Redundancy
Join Date: Apr 2004
Location: Montreal
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Quote:
Originally Posted by Bobblehead
That is the US.
Canada is a full payout.
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That's done because of taxes though isn't it? I think you have to pay tax on lottery winnings in the States.
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05-21-2009, 01:44 PM
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#45
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First Line Centre
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Yeah lottery winnings in the US are taxed. So those $300 million powerball payouts usually net the personly "only" around half....
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05-21-2009, 02:07 PM
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#46
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Join Date: May 2004
Location: @robdashjamieson
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If you are looking for a job, have payroll experience, and wouldn't mind working in Edmonton... I'd apply to ATB Financial ASAP...
http://www.edmontonjournal.com/news/...577/story.html
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Last edited by Prototype; 05-21-2009 at 02:36 PM.
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05-21-2009, 02:29 PM
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#47
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In the Sin Bin
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Quote:
Originally Posted by Old Yeller
Yeah lottery winnings in the US are taxed. So those $300 million powerball payouts usually net the personly "only" around half....
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And since they invariably take the lump sum rather than the annuity, they usually walk away with a quarter. Or, "only" $75 million.
I love the fine print on the powerball... you only get the full amount if you take the annuity. So the operators of that lottery are counting first on people using the lottery to plan their retirement to but hundreds of millions of dollars in tickets, and then they count on the winner being so greedy they take the lump sum instead. On those $300 million draws, that's an instant $150 million in the operators pockets.
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05-21-2009, 02:36 PM
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#48
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One of the Nine
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Quote:
Originally Posted by Resolute 14
And since they invariably take the lump sum rather than the annuity, they usually walk away with a quarter. Or, "only" $75 million.
I love the fine print on the powerball... you only get the full amount if you take the annuity. So the operators of that lottery are counting first on people using the lottery to plan their retirement to but hundreds of millions of dollars in tickets, and then they count on the winner being so greedy they take the lump sum instead. On those $300 million draws, that's an instant $150 million in the operators pockets.
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I think you mean $75 mil since $150 mil is going to Uncle Sam.
As for the 'greedy' part, I'd definitely argue that it's much wiser to take the cash today and put it to work than it is to just retire and wait for your monthly cheque, whatever size it may be.
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05-21-2009, 02:37 PM
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#49
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In the Sin Bin
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True, but consider the likely state of mind of a winner. Far too many don't invest it, they just toss it in the bank and let it depreciate as they spend like drunken sailors on shore leave.
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05-21-2009, 02:42 PM
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#50
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One of the Nine
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Quote:
Originally Posted by Resolute 14
True, but consider the likely state of mind of a winner. Far too many don't invest it, they just toss it in the bank and let it depreciate as they spend like drunken sailors on shore leave.
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Touche. I almost think that they should force these winners to at least attend a 4 hour course on what their money could do for them before they hand over the cheque.
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05-21-2009, 02:53 PM
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#51
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#1 Goaltender
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If only...
Investing 4 million at 6% is $240,000/year. Not too shabby.
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05-21-2009, 03:06 PM
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#52
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First Line Centre
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See I bet 90% of major lottery winners invest soundly and almost never touch the principle, actually grow their money, and live a comfortable life.... so totally uninteresting to the public.
It's the 10% that spend with reckless abandonment and are broke within 5 years that are interesting.
Edit: And I didn't realize that if you take the lump sum in powerball you only get half of it.
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05-21-2009, 03:37 PM
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#53
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Franchise Player
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Quote:
Originally Posted by peter12
It's still true. Lotteries are the tax solely for the stupid.
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I didn't want to say it. I've never bought a lottery ticket of any kind. But to those who do, thanks for keeping my taxes down and funding good causes. I write a financial newspaper column and one day I'll write about how people could get their million dollars by investing all that money they spend on lottery dreams. Apparently this money was won by about 13 ATB employees. There was quite the fuss at the ATB branch this morning. I trust they bought the coffee today.
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05-21-2009, 03:45 PM
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#54
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Playboy Mansion Poolboy
Join Date: Apr 2004
Location: Close enough to make a beer run during a TV timeout
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Quote:
Originally Posted by Old Yeller
Edit: And I didn't realize that if you take the lump sum in powerball you only get half of it.
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Yeah, I used to do a lotto pool for people at my work. If I or anybody was going to the States we'd buy some Powerball tickets. The funny thing was there were times when it was over $100M so about $60M cash payout; and people would say we should go for the 20 year payout. I explained that as a millionaire, the last thing I wanted to do was continue to administer the pool and keep track of what the other 20 millionaires were doing.
I told them we'd take the cash, which would go down to $40M US so about $2MUS each- see you and have a nice life.
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05-21-2009, 03:53 PM
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#55
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Franchise Player
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Quote:
Originally Posted by MoneyGuy
I didn't want to say it. I've never bought a lottery ticket of any kind. But to those who do, thanks for keeping my taxes down and funding good causes. I write a financial newspaper column and one day I'll write about how people could get their million dollars by investing all that money they spend on lottery dreams. Apparently this money was won by about 13 ATB employees. There was quite the fuss at the ATB branch this morning. I trust they bought the coffee today.
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What are your thoughts about charity lotteries? Same thing as 649 and Super 7?
I like to buy $250 in tickets for the cancer one
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05-21-2009, 03:59 PM
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#56
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Voted for Kodos
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Quote:
Originally Posted by ken0042
Yeah, I used to do a lotto pool for people at my work. If I or anybody was going to the States we'd buy some Powerball tickets. The funny thing was there were times when it was over $100M so about $60M cash payout; and people would say we should go for the 20 year payout. I explained that as a millionaire, the last thing I wanted to do was continue to administer the pool and keep track of what the other 20 millionaires were doing.
I told them we'd take the cash, which would go down to $40M US so about $2MUS each- see you and have a nice life.
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why would it go down to $40M US? If a Canadian wins a US lottery, they don't have to pay any tax on it.
If a Canadian ever one one of those big US lotteries, it would take a huge chunk out of the state budget, considering the lost tax revenue on the winnings.
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05-21-2009, 03:59 PM
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#57
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Join Date: May 2004
Location: @robdashjamieson
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I've heard of people buying 2 tickets for the same draw, with the same numbers. That way, if the pot is split... instead of 1/whatever, they get 2/whatever. Not sure if it's legal, but that's their thought process.
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05-21-2009, 04:01 PM
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#58
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Voted for Kodos
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Quote:
Originally Posted by 4X4
I think you mean $75 mil since $150 mil is going to Uncle Sam.
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No, the tax would come off what was paid out, so the tax would be $75M, and the operators would "pocket" the $150M.
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05-21-2009, 04:01 PM
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#59
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Unfrozen Caveman Lawyer
Join Date: Oct 2002
Location: Crowsnest Pass
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05-21-2009, 04:05 PM
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#60
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Franchise Player
Join Date: Mar 2007
Location: Income Tax Central
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Is it too late to call 'Shenanigans?'
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